<\/span><\/h3>\n\n\n\nQ1. Is GST applicable on under-construction flats purchased in 2026?<\/strong>
Yes. GST applies on all under-construction residential and commercial properties where the completion certificate has not been issued. Residential non-affordable housing attracts 5% GST (effective, after land deduction), while affordable housing units attract 1%. Completion certificate issuance ends GST liability on that property.<\/p>\n\n\n\nQ2. Can homebuyers claim Input Tax Credit on GST paid for under-construction property?<\/strong>
No. Under the revised GST regime effective April 1, 2019, individual homebuyers cannot claim ITC on GST paid for residential under-construction property. ITC remains available only for commercial property acquisitions through GST-registered businesses for taxable business use.<\/p>\n\n\n\nQ3. How is GST calculated on an under-construction apartment costing \u20b980 lakh?<\/strong>
The calculation applies a mandatory one-third land abatement. Effective taxable value = \u20b980 lakh \u00d7 2\/3 = \u20b953.33 lakh. At 5% GST (non-affordable), the GST payable = approximately \u20b92.67 lakh. At 1% (affordable housing), GST = approximately \u20b953,333. Always verify the applicable rate based on project classification.<\/p>\n\n\n\nQ4. What happens to GST if the builder delays possession beyond the agreed date?<\/strong>
GST liability is triggered at each installment payment milestone, not at possession. Delays do not alter GST already paid. However, if the project remains under-construction, GST continues to apply on future installments. Any compensation received from the builder for delay may attract separate GST analysis.<\/p>\n\n\n\nQ5. Do NRIs pay GST differently on under-construction property purchases in India?<\/strong>
No \u2014 NRIs pay the same GST rates as Indian residents on under-construction property. The tax is collected by the developer. However, NRIs must additionally comply with FEMA regulations on fund remittance, repatriation limits, and account type requirements (NRE\/NRO), which operate independently of the GST framework.<\/p>\n","protected":false},"excerpt":{"rendered":"If you’re purchasing GST on under-construction property in India, understanding your tax obligations in 2026 is not optional \u2014 it’s essential. Whether you’re a first-time homebuyer in Mumbai, an NRI investing from Dubai, or a global real estate fund evaluating Indian residential assets, the GST framework governing under-construction properties directly impacts your total cost, compliance […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[812],"tags":[4031,4037,4042,4034,4039,4035,4038,4036,3497,4040,4032,4041,4033],"class_list":["post-9411","post","type-post","status-publish","format-standard","hentry","category-blog","tag-affordable-housing-gst-rate","tag-cgst-works-contract","tag-gst-on-flat-purchase","tag-gst-on-under-construction-property","tag-gst-real-estate-india","tag-gst-residential-property","tag-input-tax-credit-property","tag-itc-rules-india-2026","tag-nri-property-purchase-india","tag-pmay-gst-exemption","tag-property-gst-calculation","tag-real-estate-gst-compliance","tag-under-construction-flat-gst"],"_links":{"self":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/comments?post=9411"}],"version-history":[{"count":1,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9411\/revisions"}],"predecessor-version":[{"id":9413,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9411\/revisions\/9413"}],"wp:attachment":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/media?parent=9411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/categories?post=9411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/tags?post=9411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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